 | Drakenstein Municipality Sticks to Winning Formula as it Tables 2025/26 Budget
28 May 2025 | Press Releases |
28 May 2025
In a country where two-thirds of municipalities are said to be in financial distress and local government in crisis, Drakenstein Municipality is one of a few that consistently passes the test for clean governance, sound financial management, and excellent service delivery. It has a winning formula, and it sticks to it, i.e.: prioritising infrastructure maintenance and upgrading; promoting homegrown innovation; and meeting its residents and business sector halfway by, among others, keeping municipal bills as affordable as possible.
Drakenstein Municipality is South Africa’s top-rated secondary city for good governance and last year, it added to its trophy table a 10th clean audit opinion from the Auditor-General of South Africa for the 2023/24 financial year.
On Wednesday, 28 May 2025, Councillor Stephen Korabie, Executive Mayor of Drakenstein Municipality, tabled the Municipality’s 2025/26 budget – at R4.4 billion its largest to date, comprising a R3.7 billion operating budget and a R714 million capital budget.
Addressing Council, he said: “Building on our successes of the past five years, the proposed final budget focuses on enabling economic development to help stimulate job creation, alleviate poverty, and improve people’s lives while maintaining financial sustainability. The budget is based on realistic revenue streams and is credible and sustainable. We want to grow Drakenstein as a thriving and highly efficient city, where our people can live, work and play.”
Drakenstein economy expands by R10 billion since 2020
Over the past three years Drakenstein’s economy has seen rapid growth, buoyed by increased manufacturing, retail trade, finance, agriculture, and construction activities, among others. The recent extension of Paarl Mall and construction of three new malls in Paarl, with two more shopping centres in the pipeline, all signal strong investor confidence. This growing number of retail centres are poised to serve the proliferation of new residential estates in Drakenstein, while major roads such as the Mandela Freedom Road (R301) and the R45 are being upgraded to ensure a smooth flow of economic goods and consumers.
“The Drakenstein economy expanded by R10 billion since 2020 and is currently valued at an estimated R35 billion (2024). The area’s unemployment rate has likely dropped to 14% for 2024, much lower than the national figure of 33%,” the Executive Mayor said.
Drakenstein’s construction sector continues to be one of its busiest, creating 577 job opportunities in 2024 alone. During the 2024/25 financial year, the Municipality granted land use development rights to 515 new residential opportunities, 12 737 m2 of new commercial developments, and 16 232 m2 of new industrial developments. In addition, the Municipality is currently processing land use rights applications for 650 new residential opportunities, 34 699 m2 of new commercial land and 142 474 m2 of new industrial developments.
From 1 July 2024 to date, the Municipality has granted 1 373 residential, commercial, agricultural, industrial and other building plan approvals, with a total value of approximately R2.84 billion.
While the Municipality is celebrating this boom and the job opportunities it creates for its residents, it knows all too well that it must keep on developing Drakenstein responsibly and sustainably. It does this by aligning infrastructure planning and upgrades with developmental needs and movement; meticulously planning land use and traffic flow; and carefully managing urbanisation – all while protecting the environment and retaining the area’s natural splendour and country charm. “We have listened to our residents, and we are re-organising our approach, resources and focus,” Councillor Korabie said.
PRIORITISING INFRASTRUCTURE MAINTENANCE AND UPGRADING
Reflecting on the 2024/25 financial year, the Executive Mayor listed positive outcomes such as:
- The development of the Nieuwedrift Cemetery, a R2.5 million project providing much-needed burial space, is well underway and this phase is scheduled for completion by the end of June this year;
- The tarring of the western side parking at the Daljosafat Athletics Stadium in Paarl, at a cost of R6.7 million, will also be finalised by the end of June this year;
- An estimated R351 million was spent on upgrading water and wastewater systems in Paarl and Wellington, including a R326 million Budget Facility for Infrastructure (BFI) allocation received from National Treasury for the upgrade of bulk sewerage network and treatment capacity at the Paarl Wastewater Treatment Works;
- Stormwater systems throughout Drakenstein were upgraded at a cost of R7.5 million;
- The capacity at the Dalweiding Electricity Substation and Vlakkeland Switching Station was increased to supply the Vlakkeland housing development – at an estimated R2.9 million;
- Various upgrades on electrical networks and replacements due to vandalism were performed across Drakenstein, amounting to R22.6 million;
- Roads across Drakenstein were upgraded and resealed at an estimated R18.5 million, with an additional R32.4 million allocated to rebuild Drommedaris Road, Paarl East; and
- The upgrading of Main Road 201 to a dual carriageway between the N1 and Kliprug Road has been completed at a total cost of R215 million. Drakenstein Municipality contributed R80 million over the last four financial years to this project, while the Western Cape Government bankrolled the balance. The project created approximately 240 job opportunities.
Looking ahead at the 2025/26 financial year, the Executive Mayor listed the following infrastructure maintenance and upgrade projects:
1. Water and sanitation – to the value of R465 million
Main capital projects include:
- Rehabilitate and upgrade the Paarl Wastewater Treatment Works – R426 million;
- Rehabilitate and extend the Wellington Wastewater Treatment Works – R3.9 million;
- Install bulk services in Simondium – R20 million;
- Replace water networks – R19.5 million;
- Upgrade and replace basic services – R2 million;
- Replace water and sanitation services equipment – R2.9 million; and
- Replace sewage networks – R5.1 million.
2. Electricity – to the value of R65.7 million
Main capital projects include:
- Replace old equipment – R4.8 million;
- Increase existing high-, medium- and low-tension network capacity – R8.3 million;
- Upgrade Dalweiding Substation and switchgear – R10.5 million;
- Upgrading of SCADA system – R3.1 million;
- Repairs following vandalism and theft of infrastructure – R4 million; and
- Electrical Infrastructure Upgrade Programme, including electrification of informal settlements – R2.5 million.
3. Roads and stormwater – to the value of R51.7 million
Main capital projects include:
- Rebuild Drommedaris Road, Paarl East – R21 million;
- Reseal roads – R17.8 million;
- Upgrade Lady Grey Street, Paarl, and surrounding areas – R1.7 million;
- Refurbish stormwater systems – R6 million; and
- Upgrade traffic lights, traffic calming measures, tarring of sidewalks, bus shelters, closing of walkways, and machinery and equipment – R3.4 million.
4. Waste management – to the value of R15.6 million
Main capital projects include:
- Purchase skips, street refuse bins and wheelie bins to ensure that more formalised areas properly dispose of waste - R2.5 million; and
- Purchase solid waste vehicles - R5.9 million.
“Waste management remains one of our biggest challenges in Drakenstein, the district and the province,” the Executive Mayor said. “We need our residents to take ownership of their environment and work together with the Municipality to keep it clean. Only then will we win the war against waste. Several initiatives are being planned for this financial year to reduce and control illegal dumping, and to ensure a clean, beautiful and healthy Drakenstein for all. We will, for example, continue to place and service skips in hotspot areas and increase these skips, while our housing inspectors will monitor refuse removal in informal settlements.”
5. Fleet supplement programme – to the value of R32.4 million
The municipal fleet plays a critical role in supporting daily operations and ensuring efficient service delivery. “We have allocated R32.4 million towards supplementing and modernising our current fleet across all departments,” he said.
6. Sport facilities, parks and cemeteries – to the value of R16.7 million
Main capital projects include:
- Continue to upgrade the Daljosafat Athletics Stadium’s parking area – R2.5 million;
- Specific works at the De Kraal sport facility, Paarl East – R1 million;
- Further establish the Nieuwedrift Cemetery – R3 million;
- Upgrade swimming pools and sport facilities in Gouda and Hermon – R1.8 million;
- Upgrade facilities at Orleans Park in Paarl East, as well as parks, main roads and tools of the trade – R7.4 million; and
- Upgrade roads leading to various areas on Paarl Mountain - R500 000.
PROMOTING HOMEGROWN INNOVATION
1. Tourism
During the past financial year, the Municipality has shifted its tourism focus to create an enabling environment for the private sector to lead the tourism sector growth in Drakenstein. This change in approach led to the development of a joint tourism agenda to set out the growth path for tourism in the area.
The most notable change in the Municipality’s basket of destination marketing services is the revival of the #visitwellington and #visitpaarl platforms, currently managed by a local service provider who was appointed to do specific destination marketing services for Drakenstein.
“We are encouraged by the tourism sector’s drive to boost the industry. We can also confidently say our destination is coming to its right as a premium events destination,” the Executive Mayor added.
2. Public Safety
Drakenstein Municipality has made remarkable progress in improving safety, creating a more inviting environment for investment which benefits its community. Its new Public Safety Department has been collaborating with key stakeholders such as the South African Police Service, community policing forums, neighbourhood watches, and private security firms to create a sustainable and noteworthy impact through force multiplication.
Another initiative, the Green Rangers programme, has improved safety protocols on Paarl Mountain and the Paarl Arboretum. “Green Rangers are essential in promoting the safety and wellbeing of those who come to enjoy these natural spaces, and we plan to broaden this programme in the new year,” he said.
The Drakenstein Operational Control Centre (DOCC) is posed for significant expansion and enhancement in 2025/26. “By fostering deeper integration, we will facilitate the seamless exchange of vital data, information, and expertise. Furthermore, we will expand our network of strategically positioned closed-circuit television (CCTV) cameras, aligning them with our safety partners' systems. This will ensure that incidents are managed with unprecedented speed and efficiency. In addition, we will harness drone technology to provide real-time aerial footage, further augmenting our ability to respond effectively to any situation,” Councillor Korabie explained.
The Municipality’s Traffic Services has also successfully adopted an innovative electronic learner licensing system, making it the Western Cape frontrunner in this regard.
MEETING THE COMMUNITY OF DRAKENSTEIN HALFWAY
1. Financial assistance to the poor
With over 54% of Drakenstein’s households classified as poor, the Municipality will be spending R208 million on indigent benefits to assist vulnerable residents in 2025/26, i.e. monthly assistance of R1 560 to every registered indigent household. “The Municipality’s indigent support is more than twice the national norm and significantly higher than that of our neighbouring municipalities,” Councillor Korabie said.
2. New tariffs – Capping homeowners’ property rates increases at 12.5%
In a first for municipalities in South Africa, Drakenstein Municipality has successfully engaged with the national Department of Cooperative Governance and Traditional Affairs (CoGTA) to cap property rates increases for its residential property owners on 12.5% in the new financial year.
Dubbed “a game changer” by the Executive Mayor, he said the introduction of the capping principle would enable Drakenstein’s 42 635 residential property owners to have a maximum increase of 12.5% or less in their property rates payable year on year, irrespective of the increase in their properties’ market values. This allayed homeowners’ fears that their property tax would skyrocket on 1 July 2025 following the announcement of the new General Valuation Roll which signalled a sizeable average increase in the Drakenstein property market value of between 50% and 60%. To enable property owners to pre-calculate their new monthly bills and plan accordingly, the Municipality introduced a Rates and Tariff Calculator in April this year.
In addition, the Municipality is meeting its residents, business owners, and developers halfway in the following ways in 2025/26:
- Owners of properties valued at less than R350 000 won’t have to pay property taxes;
- All qualifying indigent consumers owning properties valued at up to R1 million won’t have to pay property taxes;
- All pensioners over 60 will receive an automatic 5% reduction on property rates;
- Pensioners over 60 with a proven monthly income of R35 000 or less will receive an additional rate reduction of 10% upon application and approval; and
- Bringing relief to new homeowners as well as property developers, the Municipality is reducing its fees for new residential water and sewerage connections by a whopping 50%.
The proposed tariff increases for other services in 2025/26 are as follows:
- Water – 7.7% (directly linked to the City of Cape Town’s bulk water increase of 20.6%);
- Refuse removal and sanitation – 5.9%; and
- Electricity – 10.32%.
“I can assure you that robust internal and external financial discussions took place, as well as benchmarking exercises with neighbouring municipalities, to ensure that we implement fair and affordable tariffs. I also want to thank our ratepayers for honouring their commitments and paying their municipal accounts. The quality of services we render is only possible thanks to the cooperation of our community,” the Executive Mayor said.
3. Creating jobs through EPWP
Ensuring that it creates job opportunities in a fair and transparent manner, Drakenstein Municipality will be contributing R18.3 million to the Expanded Public Works Programme (EPWP) in the new financial year, with the national Department of Transport and Public Works funding a further R3.3 million. This combined allocation provides for 461 job opportunities.
4. Making home life better
The National Government has awarded Drakenstein Municipality a grant allocation of R30.7 million for 2025/26, of which the bulk will be used to service sites at the Simondium housing development. The Municipality will be contributing a further R20 million to this project, as well as improve Lover’s Lane in Paarl East and other informal settlements to the tune of R12.7 million through an Informal Settlements Upgrading Partnership grant.
The maintenance of aged municipal rental stock is also high on the Municipality’s priority list. Five-million rand has been allocated for maintaining rental stock and rectifying structural defects. In the previous financial year, the Municipality upgraded basic services in informal settlements at a cost of R5 million.
5. Overnight shelters and soup kitchens: An ongoing journey of compassion and care
“It is with pride and gratitude that I announce the launch of two initiatives designed to uplift and support our most vulnerable residents, namely the enhancement of our Soup Kitchen programme to provide daily nourishment for those in need, and the revitalisation of the Paarl and Wellington Night Shelters. In this way, we reaffirm our commitment to offering safe and supportive spaces for our homeless community,” said Councillor Korabie.
He called the shelters stepping stones designed to empower homeless individuals to reintegrate into society and become part of the working community. Each person entering the shelter will be required to participate in various developmental programmes aimed at equipping them to be able to help themselves.
“These efforts represent more than infrastructure; they symbolise our shared values of care, solidarity, and human dignity,” he said.
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Issued by: Communication and Marketing, Drakenstein Municipality
